Technical Observation - May 14, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing sharp upside bounce on the announcement of economic package in last session, Nifty shifted into sharp weakness today and closed the day lower by 2.57%.A small negative candle was formed today with gap down opening. The opening downside gap remains unfilled. This indicates failed upside breakout attempt in the market.

Recently we observe high volatility and failed attempt of upside and downside breakouts in both side. The recent opening upside and downside gaps of the last three sessions could signal formation of another (apart from previous 4th May) bearish island reversal pattern as per hourly timeframe, with the downside pattern target of 9045.

Nifty is currently placed at the edge of immediate support at 9100-9050 levels and a sustainable move below this area could open further steep weakness in the market. The next downside levels to be watched around 8900. Immediate resistance is placed at 9250 levels.

Source : Equity Bulls

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